1 / 32

2012 Year in Review

2012 Year in Review. Prepared by: Eric J. Deters Riverland Farm Business Management Director/Instructor. In 2012, on average, each farmer…. Owned 241 acres (+5) Raised crops on 642 acres (+25) Had assets totaling $2,999,653 (+405,504) Managed debt of $1,209,663 (-154,801)

akira
Download Presentation

2012 Year in Review

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2012 Year in Review Prepared by: Eric J. Deters Riverland Farm Business Management Director/Instructor

  2. In 2012, on average, each farmer… • Owned 241 acres (+5) • Raised crops on 642 acres (+25) • Had assets totaling $2,999,653 (+405,504) • Managed debt of $1,209,663 (-154,801) • Had a net worth of $1,789,990 (+250,704) • Net farm income of $260,813 (+48,332) • Median Net Farm Income of $176,593 (+38,748) • Added $32,698 of non farm income (+5,881)

  3. Cash Expenses to Cash Income

  4. Net Farm Income NET FARM INCOME – is total cash income minus total cash expenses and depreciation +/- any change in inventory

  5. What is the source of Net Farm Income?

  6. Net Farm Income by Type of Farm (70% sales)

  7. Rate of Return on Farm Assets (ROA)

  8. Balance Sheet AnalysisMoney Borrowed -Vs- Debt Repaid

  9. Percent in DebtMarket Basis

  10. Total Family Uses of Cash, 2012 51 S.E. Minnesota Farm Families ITEM Cash Living Expenses $55,119 Income Taxes 17,880 Other Capital Purchases 2,313 Personal Share New Auto 3,283 Savings & Investments 8,384 Total Family Uses of Cash $86,723

  11. Farm Family SpendingWhere Did the $1,162,859 Go in 2012?

  12. What does my banker want to know?

  13. Current Ratio (Liquidity)Current farm assets / current farm liabilities

  14. Working Capital (Liquidity)Current farm assets minus current farm liabilities • Green 50% of Cash Operating exp. • Yellow 20 to50 % of Cash Operating exp. • Red <20 % of Cash Operating exp.

  15. Debt to Asset Ratio (Solvency)Total farm liabilities / total farm assets • Red >70 % in Debt Yellow 30 to 70 % Debt • Green <30 % Debt

  16. Term Debt Coverage Ratio >150 % Green 110 to 150 yellow <110 % Red

  17. Financial Efficiency – 2001 to 2010How was the Gross Revenue split in the Average Business?

  18. 2012Crop Review

  19. Corn Yields Per Acre(Rented Acres)

  20. Total Direct & Overhead Cost per Bushel of Corn(Rented Acres)

  21. The Average Price of Corn SoldCash sales during the year

  22. Soybeans Yields Per Acre(Rented Acres)

  23. Total Direct & Overhead Cost per Bushel of Soybeans(Rented Acres)

  24. The Average Price of Soybeans SoldCash sales during the year

  25. 2012 Dairy Returns

  26. Average Milk Production per CowBased on Net Return per unit

  27. Cost per Cwt. of Milk with Other Revenue and Labor & Management(Combined Dairy)

  28. The Average Price of Milk Sold

  29. Have a Great Year in 2013!

More Related